Formalities - payment 'under protest'

[govindaraju velugula]

For making payment 'under protest' to govt. what formalities, we have to complied with department under service tax law

[Surender Gupta]

No specific formalities are required to be complied with for making payment under protest. You just mention on the fact of GAR-7 challan and / or in the correspondence with the department that the amount has been paid under protest. Moreover, even if you do not mention the word under protest but have some letters of the department directing you to make payment and you choose to fight the case on merit after depositing the the amount as per the letter of the department, the same would be treated by the appellant authorities as under protest.

AI Summary

Payment under protest: no formalities required; notation on challan or correspondence preserves right to contest the demand. No specific formalities are required to make a payment under protest in service tax. Taxpayers should mention on the GAR-7 challan and/or in correspondence that the amount is paid under protest. Payments made in compliance with departmental directions that are later contested will generally be treated by authorities as payments under protest even if the exact phrase is not used, so documentary notation on payment instruments or communications suffices to preserve the right to challenge the demand.